The construction of a new football stadium is rarely a source of joy for those living nearby – but it appears they are wrong to think it will cut the value of their homes.

In a ground-breaking piece of research, two economists found the construction of a new stadium actually raises local property prices by as much as 15%.

Gabriel Ahlfeldt, of the LSE, and Georgios Kavetsos, of the Cass Business School, looked at house prices around two new football stadiums: Arsenal's Emirates stadium and Wembley.

Their research, presented at this year's Royal Economic Society conference, found property prices within 5km of the stadiums rose significantly from the time plans to build were announced. Their analysis shows prices started to rise as early as 2002 in the case of the new Wembley and 1999 in the case of the Emirates stadium, corresponding to the years when construction of the former started and the final decision on the site of the latter were made.

General house price inflation could not explain the rises, the economists found, and nor could the transport improvements. The two write: "The effect was highest very close to the stadium and diminished gradually with distance until disappearing at a distance of about 5km."

In the case of the Emirates stadium, built 500m from the old Arsenal stadium, appreciation in property prices was accompanied by a relative decline in prices around the old Highbury location, indicating a shift in demand.

The pair note: "The recent decision to turn London's Olympic stadium into a football stadium may turn out to be a wise one."